Global publishing powerhouse EA has announced that it is to cut six per cent of its global workforce, equivalent to between 500 and 600 positions, following increased losses in the financial quarter ending September 30th.
The AP reports that the cuts will span all aspects of the company and will be spread across the firm’s global workforce. EA hopes to save around $50 million per year as a result.
Despite a significant sales hike of 40 per cent, with the total reaching $894 million, losses totalled $310 million – far more than the $195 million loss in the same quarter last year. Sales revenue exceeded expectations, however, reaching $1.13 billion.
Considering the slowdown at retail we’ve seen in October, we are cautious in the short term," chief executive John Riccitiello stated. Longer term, we are very bullish on the game sector overall and on EA in particular.”
CFO Eric Brown added: We have heard that retailer foot traffic is down in general, which is a negative. But we also know that retailers are increasing their shelf space for video games ahead of the holidays.”
Shares in the company have so far fallen 14.5 per cent following the news.